(Weighted average cost of capital) The target capital structure for Jowers Manufacturing is

54

percent common stock,

17

percent preferred stock, and

29

percent debt. If the cost of common equity for the firm is

19.8

percent, the cost of preferred stock is

12.6

percent, and the before-tax cost of debt is

10.6

percent, what is Jowers' cost of capital? The firm's tax rate is

34

percent.

Jowers' cost of capital is???????? (Round to three decimal places.)